Become a Fan

TL Twitter Updates

May 7, 2016

Stocata S&P 500 Analysis: May 7, 2016.

A week ago I wrote: "It looks like the expected move down is confirmed. There may be another small up retracement the coming week, but medium (look at the weekly chart) and longer term (look at the monthly chart) I expect a continuation of the down move. Next down targets on the daily chart are the 50, 100 and 200 daily averages and the 61.8% Fibonacci retracement level at 1996. Further away we should expect a move much lower towards the median line of the new downward pitchfork. "

The idea that we had a confirmation of the downturn two weeks ago, is further confirmed the past week with a lower index. Also on the weekly chart it looks like we must expect a further down move. The index now finds support on the 76.4% Fibonacci retracement over the move up from the bottom of correction wave 3.3. There is also support from previous lows in the index. Reason why there may be some pullback up to the upper side of the downward pitchfork. But medium term we should expect a further move down towards the 100 day average, the 61.8% Fibonacci retracement, the S2 pivot support of the month and the 50% retrace around 1960. Longer term the median line of the downward pitchfork is the next low target, probably below 1800.